Small BusinessNTPC follow-on offer likely on Feb 3
The country"s largest power producer National Thermal Power Corporation"s (NTPC)
much-awaited follow-on public offer (FPO), which is expected to fetch the government about Rs 11,000 crore, is likely to open on February 3.
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"NTPC"s FPO would open on February 3 and close on February 5," a senior finance ministry official said.
NTPC had on Tuesday filed the draft prospectus for its FPO with the market regulator the Securities and Exchange Board of India (Sebi).
The government is divesting 5 per cent stake in NTPC through this FPO, which is expected to bring in about Rs 11,000 crore going by current market valuations.
After the 5 per cent stake dilution, the government"s holding in the power utility will come down to 84.5 per cent from the current 89.5 per cent.
The Cabinet Committee on Economic Affairs had in October 2009 approved sale of 5 per cent stake of the government in NTPC.
The government has already appointed ICICI Securities, JP Morgan, Citi and Kotak as investment bankers for the issue. The proceeds from the FPO would go to the Investment Fund that finances social sector schemes.
After NTPC, Rural Electrification Corporation is also expected to hit the market before the Budget. Mining giant NMDC"s offer will come around March 10 while that of Satluj Jal Vidyut Nigam towards the end of March.